Mexico is the largest military and commercial aircraft market in Latin America. It has the second largest business aircraft fleet in the world and has a large private aviation services industry to service the oil and gas sector and provide executive transport.
Aerospace opportunities in Mexico
The Mexican government is working to attract more aerospace manufacturing investment - creating
opportunities for foreign suppliers.
Mexico is the largest military and commercial aircraft market in Latin America. It has the second
largest business aircraft fleet in the world and has a large private aviation services industry to
service the oil and gas sector and provide executive transport. After China, Mexico and Latin
America are forecast to be the second largest market for the Aerospace sector in the next two
The current government continues to be committed to developing the aerospace sector. Dozens
of new international companies have invested in this sector over the last few years. There are
currently more than 67 foreign aerospace suppliers (including several UK companies)
comprising of around 190 firms.
Mexico is today?s opportunity. That is why more than 16,000 foreign companies have had the
confidence to invest in the country.
More passengers are flying, a greater number of airlines are operating, and airports are upgrading
and expanding both physically and operationally. Subsequently, opportunities are available in
every aspect of the aviation industry. When the major contributors to the aviation industry grow
(i.e. airlines, airports, etc.) so do those smaller to mid-sized firms that supply the inputs to these
larger industry contributors.
In general, best prospects for products and services in the general aviation / aerospace industry
?Aeroplanes parts and spare parts.
?MRO and FBO services.
?Ground support equipment.
?Luggage checking systems; amongst many others
Mexico also provides other advantages including the ability to manufacture parts and
components for military and defence. The US government traditionally gives protective
treatment to American companies in defence deals, leaving foreign suppliers of aircraft parts a
5% duty, on average. As a member of NAFTA, Mexico is excluded from this tax, giving
suppliers in Mexico an advantage over suppliers in other countries.
The UK and Mexico have an increasingly important commercial relationship in this sector. GKN
have significant manufacturing operations in Mexicali, San Luis Potosi and Guanajuato, serving
the aerospace and engineering sectors.
Senior Aerospace (Ketema) has manufacturing operations in Saltillo, Coahuila power generation
and aerospace. Doncasters has operations in Monterrey, Nuevo Leon, manufacturing vanes and
blades for medical & aerospace. Also, Exova has testing and special processes in Monterrey; it
also has an operation in Silao, Guanajuato, providing thermal processes. Bodycote also has a
vacuum, heat treatment facility in Sonora. (Remec) has manufacturing operations in Tijuana; and
BAE has operations in Sonora and Baja California.
Other UK investors include CAV, Trac Group and Meggitt.
Latest export opportunities ? Aerospace
Latest export opportunities - Mexico
Getting into the market
It is often beneficial to have a local partner or local presence in Mexico.
An interesting characteristic of the market is the growing pressure on the supply chain to become
faster and leaner, similar to the automotive industry. This means that key suppliers and partners
will have to work more closely in increasing aspects of programme development and production.
Cost pressures are also a significant factor, particularly as many of the production elements
including metals, composites, tools, utility and energy costs and R&D are becoming more
expensive. As a result, many engine manufacturers have established supply chain offices in
Mexico developing Tier 2 and Tier 3 suppliers across the country and migrating suppliers from
abroad to Mexico.
More about doing business in Mexico
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
? Jonathan Clare, Trade and Investment Consul, British Consulate, Monterrey, Tel. +52
(81) 8356 5359 or email: firstname.lastname@example.org
? Alejandra Rodriguez, Trade and Investment Officer, British Consulate Monterrey, Tel:
+52 (81) 8356 5359, Email: email@example.com
? Luis Dario Ochoa, Trade and Investment Officer, British Consulate, Monterrey, Tel. +52
(81) 8356 5359 or email: firstname.lastname@example.org
? Carlos Botello, Trade and Investment Officer, British Consulate, Monterrey, Tel. +52 (81)
8356 5359 or email: email@example.com
Contact your local international trade team
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events ? Aerospace
Farnborough International 2012
Date: 9-15 July 2012
More about OMIS and other UKTI services for exporters